AMP Capital has entered an office park joint venture with its separate account client, Brisbane-based pension fund Sunsuper and listed developer, Mirvac Group.
The Australian fund manager took a third interest in a venture that will redevelop Sydney’s Australian Technology Park (ATP).
The development will cost approximately A$1bn (€663m).
Sydney-based AMP, which raised almost A$2bn last year, will hold the stake in its Wholesale Office Fund.
The partners will each have a one-third interest in the project, close to Sydney’s central business district.
The asset, sold by the New South Wales State Government, will be completed by the joint venture.
The new owners will develop 93,000sqm of office net lettable area.
The Commonwealth Bank of Australia (CBA) has pre-committed to a 15-year lease.
The project will begin next year, with the office buildings due for completion in 2019.
AMP said, following the acquisition of ATP, the consortium will revitalise the existing technology precinct through the development of office space over three buildings.
A further 3,000sqm of amenity, including a gymnasium, retail outlets, two child childcare centres and a multipurpose community space, will be added to the park.
AMP global head of property Carmel Hourigan described the project as “a landmark development” in New South Wales and an excellent investment opportunity for wholesale fund investors and separate account client Sunsuper.
“We are focused on delivering clients unique investment opportunities that fit our disciplined and rigorous investment criteria,” she said.
“In ATP we have secured a top-grade office asset that provides a blue-chip tenant with innovative accommodation and improved amenity.”
AMP’s Wholesale Office Fund, which has a portfolio of prime office buildings mostly in Sydney and Melbourne and valued at around A$2.7bn, recently invested in a premium office block, 700 Bourke St, in central Melbourne for A$433m.
It also bought a 50% stake for A$317m in 200 George Street, a new office development, in Sydney’s CBD for A$317m.
AMP will jointly own the completed tower with Mirvac, which is developing the office block.